Earn More Money from Business

People who have a business of their own are in one of the best positions to increase their income. If you are self-employed, do not fail to take advantage of your opportunities.

To tell the truth (as I always try to do), this sounds like a dumb thing for me to say simply because it would appear to be so obvious. But the fact is that an incredible number of self-employed and small business owners just don’t do what it takes to increase income.

Here are a few things to pay attention to if you want to increase your business income.

Focus on Management and Marketing

Remember the essential nature of your job. Peter Drucker, the most respected business authority of all time, emphasized constantly to business people that they must first recognize that there are two fundamental elements of their job: management and marketing.

Everything else can be delegated out to others, but while you may have help you must understand and take the lead in management and marketing. When you give priority to these your income will likely rise significantly.

Manage First With a Priority Given to Planning

Management means many things, more than I can mention here, but one of the most important is planning. Simply taking a couple minutes each morning to make a written list of what you need to get done that day can make a big difference.

Long term planning is just as vital. I used to schedule speakers quite a lot and always had the best while colleagues often wondered how I got them when they tried a year in advance and couldn’t. I was able to do it because I asked two or three years ahead.

Last minute planning always leaves you coming up short, even if it means not having the right tool or supplies on hand and it drains a lot of money out of many projects.

Plan your work and work your plan. It is a simple guide but surprisingly few do it effectively. You can greatly increase your income by effectively planning and scheduling your work.

Market With Enthusiasm Whether You Like It or Not

Marketing is another key to increasing income and also requires you to do what others do not do. Most people do not really like marketing and sales. I understand—it has never been my favorite activity either.

But like it or not, effective business people do spend a great deal of time doing it. Quickly growing small business owners spend anywhere from 25-65% of their time with marketing related activities! It can be one of the best ways to increase your income.

As in a lot of areas, one of the biggest mistakes you can make is thinking you can buy it instead of do it. Mass media is not the best bet for most small businesses. But there are many small things you can do to effectively market your business with excellent results.

If you haven’t read it already, get Guerrilla Marketing, 4th edition: Easy and Inexpensive Strategies for Making Big Profits from Your SmallBusiness by Jay Conrad Levinson. In this classic (but updated version), he lays out the basics of marketing and helps you find ways to market that often cost nothing in cash.

Apply the 80-20 Rule

One of the best ways to increase your business income is to apply the 80-20 rule. You know it. It says that 80% of your results come from 20% of your activity.

Years ago I realized the great value of this idea when a man I knew about seriously reduced the size of his business, giving up a majority of his customers. How hard a decision that must of been! But he more than doubled his income.

Think about whether a more narrow focus for your business might not be more profitable. Determine exactly what parts of your business pay the most. How can you do more of what pays best and less of other things that are less productive.

Give More to Get More

Do better work than others in your trade and you will start making more money than they do. Even if you cannot do better work than others, be more reliable.

I know one contractor who gets far less work than he could in spite of being very talented. Everyone speaks of his beautiful craftmanship. But he is not dependable to show up and do his work when promised.

I know another who is offered more work than he can do. He is scheduled far ahead because he is straight forward in telling you exactly when he can or cannot not do a job and when he agrees to do a job and gives you a date you can count on it. He will show up and he will stay on it until it is completed.

Conclusion

If you operate your own business, looking for ways to increase profit should be a regular practice. Unfortunately, many self-employed people are so involved in day to day activities that they forget to take steps toward reducing costs and increasing profits. Don’t be one of them.